fBTC Yield Layer
Last updated
Last updated
The FBTC Yield Layer allows users to deposit FBTC/BBTC and primarily allocates funds to the sUSDe farming strategy. The following workflows present the step-by-step processes taking place in the FBTC Yield Layer:
User deposits BBTC/FBTC into FBTC Yield Layer.
The FBTC Yield Layer will convert BBTC to FBTC at 1:1 rate.
The FBTC Yield Layer then will supply the deposited FBTC into Avalon lending market and use it as collateral to borrow USDa based on the target LTV (currently at 60%) set by the smart contract.
The FBTC Yield Layer will then convert USDa to USDT, to mint USDe on Ethena and stake USDe to sUSDe.
The FBTC Yield Layer includes a rebalance mechanism. This additional safeguard is implemented to mitigate potential liquidation events.
Holders will receive 100% of sUSDe return and 100% ENA points from the underlying USDe position (at 20x multiplier).
The yield of FBTC Yield Layer comes from the carry trade position between sUSDe staking yields and $ENA rewards from USDe and borrowing cost of USDa.
Workflow for a whitelisted user to Deposit FBTC/BBTC shown as follows:
Choose Deposit Token, FBTC or BBTC
Enter the Amount you want to deposit
Click the Approve / Deposit button
Sign the transaction with his/her wallet
Upon successful confirmation of the transaction, the user will receive a receipt token to reflect his/her share of the vault.
Workflow for a whitelisted user to withdraw FBTC shown as follows:
Choose the Amount the user wants to withdraw
Click the withdraw button and submit a withdrawal request
Sign the transaction with his/her wallet
Upon successful confirmation of the transaction, the user will transfer out the corresponding receipt token, and it is estimated that the user will receive the withdrawn FBTC in ~7 days, since sUSDe unstaking takes 7 days.
Receipt token (ylFBTC): certificate of deposit, reflecting a share of the FBTC Yield Layer
Net Value: Current estimated value of position
= Quantity of receipt token * Price of receipt token
Earnings: Estimated earnings
= Net Value - Principal
Points: Based on real-time TVL position, the user will accumulate Points from various protocols. The airdrop timeline for Points is determined by each protocol individually, so please be aware of the specific claim schedule set by each protocol.
Rewards: FBTC Yield Layer will convert a portion of the earnings ($ENA) into wBTC regularly to autocompound the value of the receipt token. Users can claim the rest of their rewards here.
